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India Eases Limits on Investment

By

Rajesh Roy,

Romit Guha and

Shefali Anand

October 4, 2012

NEW DELHI—India's government deepened a recent push to further open its economy, approving a long-pending plan to allow more overseas investments in insurance and opening the pension sector to foreign investors.

The cabinet on Thursday approved raising the limit on foreign ownership of local insurance companies to 49% from 26%. It also permitted overseas investors to own up to a 49% stake in domestic pension-fund managers—the first such investment that has been allowed.